1. ) SILVAM A/L SELLAPPAN 2. ) Subramaniam A/l Karuppiah 1. ) Tamilselvam A/l Velusamy 2. ) Darumalinggam A/l Sinniah 3. ) Nedingilian A/l Balakrishnan 4. ) THE VIVEKANANDA ASHRAMA KUALA LUMPUR 5. ) PENDAFTAR HAKMILIK NEGERI SELANGOR

1. ) SILVAM A/L SELLAPPAN 2. ) Subramaniam A/l Karuppiah 1. ) Tamilselvam A/l Velusamy 2. ) Darumalinggam A/l Sinniah 3. ) Nedingilian A/l Balakrishnan 4. ) THE VIVEKANANDA ASHRAMA KUALA LUMPUR 5. ) PENDAFTAR HAKMILIK NEGERI SELANGOR

The transfer of the land to the Vivekananda Ashrama was invalid because the trustees (first to third respondents) acted in breach of the Declaration of Trust and effected a transfer by an instrument rendered insufficient by that breach; consequently the transfer was set aside and title restored to the School (subject to proper registration in trustees' names under the NLC); appellants (office‑holders) had locus standi to sue on the School's behalf; the Registrar is protected where it acted in good faith; claim for RM2,000,000 failed as the grant was made to the Ashrama.

Citation
B-01(NCvC)(W)-374-08/2020 (Mahkamah Rayuan)
Parties
Appellant (chairman, Board of Governors): Silvam a/l Sellapan; Appellant (chairman, Parent Teacher Association): Rajaratnam a/l Naggapah; Respondent 1 / Defendant: Tamil Selvam a/l Velusamy; Respondent 2 / Defendant: Darumalinggam a/l Sinniah; Respondent 3 / Defendant: Nedingilian a/l Balakrishnan; Respondent 4 / Defendant (company Limited by Guarantee): The Vivekananda Ashrama Kuala Lumpur; Respondent 5 / Registrar of Titles: Pendaftar Hakmilik Negeri Selangor
Court
NCvC
Jurisdiction
Malaysia
Judgment Date
26 January 2022
Case Number
B-01(NCvC)(W)-374-08/2020 (Mahkamah Rayuan)
Procedural Posture
Civil Appeal (court of Appeal) / Judgment on Appeal (final Disposition by Court of Appeal)
Outcome
Appeal allowed in part; impugned transfer set aside; land restored to the School; limited reliefs granted to appellants; costs awarded.
Legal Topics
Validity of Land Transfer, Beneficiary Status of a School Under Trust, Expectation of Title, Section 43 NLC (alienation by State Authority), Section 340 NLC (defeasible Registered Title / Insufficient or Void Instrument), Section 344 NLC (trusts on Land), Section 380 NLC (correction of Title), Locus Standi of Office‑holders, Government Grant Allocation, Allegations of Fraud and Conversion
Source Language
Malay/English
Property Law Trusts Land Law Administrative Law Tort Law Education Law Validity of Land Transfer Beneficiary Status of a School Under Trust +8 more

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Parties

Silvam a/l Sellapan

Appellant (chairman, Board of Governors)

Rajaratnam a/l Naggapah

Appellant (chairman, Parent Teacher Association)

Tamil Selvam a/l Velusamy

Respondent 1 / Defendant

Darumalinggam a/l Sinniah

Respondent 2 / Defendant

Nedingilian a/l Balakrishnan

Respondent 3 / Defendant

The Vivekananda Ashrama Kuala Lumpur

Respondent 4 / Defendant (company Limited by Guarantee)

Pendaftar Hakmilik Negeri Selangor

Respondent 5 / Registrar of Titles

Procedural Posture

Civil Appeal (court of Appeal) / Judgment on Appeal (final Disposition by Court of Appeal)

Legal Issues

  1. 1 Whether the transfer of the land from the School to the Ashrama was valid
  2. 2 Whether a government school (or the PTA/BOG) can be a beneficiary of a trust and thus hold land
  3. 3 Whether the Declaration of Trust and the trustees' execution of Form 14A were binding and valid

Ratio Decidendi

The transfer of the land to the Vivekananda Ashrama was invalid because the trustees (first to third respondents) acted in breach of the Declaration of Trust and effected a transfer by an instrument rendered insufficient by that breach; consequently the transfer was set aside and title restored to the School (subject to proper registration in trustees' names under the NLC); appellants (office‑holders) had locus standi to sue on the School's behalf; the Registrar is protected where it acted in good faith; claim for RM2,000,000 failed as the grant was made to the Ashrama.

Court Disposition

Appeal allowed in part; impugned transfer set aside; land restored to the School; limited reliefs granted to appellants; costs awarded.

Orders

  • Set aside the transfer of the land to the fourth respondent (The Vivekananda Ashrama Kuala Lumpur)
  • Restore the land to the School (allowing prayers (a), (b), (c) and (e) of paragraph 31 of the amended statement of claim)